About Acacia Research

Acacia Research Corporation operates as an opportunistic capital platform that purchases businesses based on the differentials between public and private market valuations. The company uses a wide range of transactional and operational capabilities to realize the intrinsic value in the businesses that the company acquires. The company’s ideal transactions include the acquisition of public or private companies, the acquisition of divisions of other companies, or structured transactions that can result in the recapitalization or restructuring of the ownership of a business to enhance value. The company’s focus is companies with market values in the sub-$2 billion range and particularly on businesses valued at $1 billion or less. The company is a principal in the licensing and enforcement of patent portfolios, with the company’s operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright through the company’s Patent Licensing, Enforcement and Technologies Business. The company owns and operates a leading manufacturer and distributor of industrial impact printers, also known as line matrix printers, and related consumables and services through the company’s Industrial Operations Business, and the company continues to monetize assets from the company’s Life Sciences Portfolio. Relationship with Starboard Value, LP The company’s strategic relationship with Starboard Value, LP (‘Starboard’) provides the company access to industry expertise, and operating partners and industry experts to evaluate potential acquisition opportunities and enhance the oversight and value creation of such businesses once acquired. Starboard has provided, and the company expects will continue to provide, ready access to its extensive network of industry executives and, as part of the company’s relationship, Starboard has assisted, and the company expects will continue to assist, with sourcing and evaluating appropriate acquisition opportunities. Core Corporate Development and Investment Approach Going forward, the company plans to continue focusing on creating transactions where the company is able to acquire operating businesses and strategic assets that are undervalued. The company’s expertise in, and experience with, complex situations enable the company to discover and structure opportunities that are attractive for the company’s shareholders and the leadership of the businesses the company purchases. The company utilizes its capabilities across Research, Transactions and Execution, and Operations and Management to drive the discovery, investment, acquisition and integration of such target opportunities. Research Through the company’s Research platform, the company identifies companies, both public and private, at an appreciable discount to intrinsic value. The company has a broad mandate, with a particular interest in businesses operating in mature technology, industrial, healthcare and certain financial services sectors. The company also sees opportunities as large corporate owners seek to divest non-core operations. Overall, the company’s acquisition pipeline is robust, and is a product of the company’s public market research expertise, as well as the company’s private market sourcing process. The success of the company’s strategy depends on its ability to properly identify acquisition candidates. The company’s approach often involves the concept of ‘applied investment banking’, whereby the company can leverage the company’s ability to understand complex situations, identify a path to value creation through deal structuring, and invest capital to drive such outcomes. Identifying these situations involves engaging in a substantial amount of detailed fundamental research, both internally and in conjunction with third-parties; critically evaluating management teams; identifying and assessing financial and operational strengths and weaknesses absolutely and relative to industry competitors; researching and evaluating relevant industry information; and thoughtfully negotiating acquisition terms and conditions. Transactions and Execution Once the company identifies a favorable opportunity, the company may purchase a strategic block of shares in the target company, if publicly traded. From that point, the process of consummating a transaction or acquisition can be time-consuming and complex, taking months if not a year or longer to complete. During that time the company will continue to leverage its management team’s experience and expertise in researching and valuing prospective target businesses, as well as negotiating the ultimate acquisition of such target businesses. The company will also leverage the extensive networks of the company’s operating partners, who are essential partners in identifying and executing acquisitions and managing for value creation. The company also regularly reviews its portfolio for opportunities to build long-term shareholder value, which may result in the divestiture of certain businesses over time. Operations and Management The company’s operational strategy involves identifying critical operating management either within the businesses or divisions the company acquires or from its extensive executive network. The company supports the management teams of each of the company’s acquired businesses by, among other things: financing internal growth strategies; supporting attractive external growth and acquisition opportunities; providing resources to assist management in controlling overhead costs and leveraging platform-wide resources; implementing operational efficiencies; and sharing best practices across the company’s portfolio companies. Equity Securities Portfolio Investment As an example of the company’s opportunistic approach and flexibility, in early 2020, the company’s research into the potential acquisition of a life science company led to the discovery of the ‘Life Sciences Portfolio’, a portfolio of life science investments available for purchase at a substantial discount to realizable asset value. The company negotiated an exclusive option to acquire the portfolio in April 2020, during a period of substantial uncertainty in the public markets in the early phase of the COVID-19 pandemic. In June 2020, the company consummated the acquisition of the Link Equity Income Fund, a portfolio of investments in 18 public and private life sciences companies. Operations Intellectual Property Operations - Patent Licensing, Enforcement and Technologies Business The company invests in intellectual property (‘IP’) and engages in the licensing and enforcement of patented technologies. Through the company’s Patent Licensing, Enforcement and Technologies Business, the company is a principal in the licensing and enforcement of patent portfolios, with the company’s operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright. While the company, from time to time, partners with inventors and patent owners, from small entities to large corporations, the company assumes all responsibility for advancing operational expenses while pursuing a patent licensing and enforcement program. When applicable the company shares net licensing revenue with its patent partners as that program matures, on a pre-arranged and negotiated basis. The company may also provide upfront capital to patent owners as an advance against future licensing revenue. On a consolidated basis, the company’s operating subsidiaries own or control the rights to multiple patent portfolios, which include the U.S. patents and certain foreign counterparts, covering technologies used in a variety of industries. The company generates revenues and related cash flows from the granting of IP rights for the use of patented technologies that the company’s operating subsidiaries control or own. The company established a proven track record of licensing and enforcement success with over 1,600 license agreements executed to date as of December 31, 2022, across nearly 200 patent portfolio licensing and enforcement programs. Industrial Operations Business In October 2021, the company consummated its first operating company acquisition of Printronix Holding Corp. (‘Printronix’). Printronix is a leading manufacturer and distributor of industrial impact printers, also known as line matrix printers, and related consumables and services. Printers consist of hardware and embedded software and may be sold with maintenance service agreements, which are serviced by outside contractors. Printronix’s line matrix printers are used for mission critical applications within these industries, including labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting. In China, India and other developing countries in Asia and Africa, the company’s printers are also prevalent in the banking and government sectors. Printronix has manufacturing, configuration and/or distribution sites located in Malaysia, the United States, Singapore, China and the Netherlands, along with sales and support locations around the world to support its global network of users, channel partners, and strategic alliances. Consumable products include inked ribbons, which are used within Printronix's printers. Printronix’s products are primarily sold through Printronix’s global network of channel partners, such as dealers and distributors, to end-users. The company is supporting existing management in its execution of strategic partnerships to generate growth. History Acacia Research Corporation was founded in 1993. The company was incorporated in California in 1993 and reincorporated in Delaware in 1999.